Speech Summaries

Keith Reinhard Chairman and CEO DDB Worldwide

The New Advertising Reality

Keith Reinhard, Chairman, DDB Worldwide, began by explaining that, in today's advertising world, the consumer is in control. Advertisers need to change the way they approach advertising and marketing to better meet the new advertising reality landscape.

Reinhard went on to say that the once generally accepted norms from a few years ago no longer work for advertisers today. For instance, the power within advertising has shifted from advertisers' choice to consumers' choice. Likewise, what used to be the "show and tell" method of advertising has now transformed into the "intertainment" method. Brands like The Sims Online must not only inform consumers about their products, but also provide a level of entertainment that further engages consumers.

Advertisers also need to switch from focusing on brand image and instead adopt a new reality focus -- brand experience. Furthermore, consumers shouldn't be viewed as targets, but rather seen as guests. Companies and advertisers need to keep in mind that now, with the ball in the consumers' court, consumers are more susceptible to leaving a brand if tempted by a better offer. That having been said, companies need to put more emphasis on developing brand lovers, who pay a premium of 15% on average across categories and who are more inclined to be a source of word-of-mouth advertising for companies.

Questions And Answers

Q: How exactly do you stop viewing consumers as targets, but rather as guests? How do you invite guests to your brand?

A: I think you need to first let consumers know that you understand them. More specifically, you need to find ways to let consumers know that you understand what product attributes are most important to them, and companies need to know exactly how consumers feel about their products.

Q: If the Internet is the most important channel to teenagers today, is the 30-second advertising spot dead?

A: One thing about the Web is that you can play the 90-second spot instead of just the 30-second spot. What's more is that not only will it be played once, but viewers can also go as far as downloading the spot and the jingle so that it can be played over and over again.

Q: How can advertising agencies make money from the Internet?

A: We have to reorient our thinking and try to create more client demand. As the demand increases, our ability to respond to demand gets better. Agencies will find a way to respond to that kind of change. The key is to understand the clients' true needs and then customize your deliverables to those needs.